An organization's customers are categorized based on the amount of purchases completed over the last 12 months. The analytics team would like to ensure the accuracy of their survey results and decide to randomly select 500 customers to participate in a survey from this large pool of customers.

An organization’s customers are categorized based on the amount of purchases completed over the last 12 months. The analytics team would like to ensure the accuracy of their survey results and decide to randomly select 500 customers to participate in a survey from this large pool of customers.

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An organization’s customers are categorized based on the amount of purchases completed over the last 12 months. The analytics team would like to ensure the accuracy of their survey results and decide to randomly select 500 customers to participate in a survey from this large pool of customers.

This is an example of:
A . Stratified sampling
B . Quota sampling
C . Purposive sampling
D . Snowball sampling

Answer: A

Explanation:

Stratified sampling is a technique that divides the population into homogeneous subgroups (strata) based on a relevant characteristic, such as the amount of purchases, and then randomly selects a proportional number of elements from each subgroup to form the sample. Stratified sampling ensures that the sample is representative of the population and reduces the sampling error and bias12.

Reference: 1: Guide to Business Data Analytics, IIBA, 2020, p. 312: Statistics for Business and Economics, David R. Anderson et al., 2014, p. 262.